Beth Corbin’s regular hourly wage rate is $18, and she receives an hourly rate o
ID: 2508741 • Letter: B
Question
Beth Corbin’s regular hourly wage rate is $18, and she receives an hourly rate of $27 for work in excess of 40 hours. During a January pay period, Beth works 50 hours. Beth’s federal income tax withholding is $98, and she has no voluntary deductions. Use January 15 for the end of the pay period and the payment date.
Prepare the journal entries to record (a) Beth’s pay for the period and (b) the payment of Beth’s wages. (Assume FICA rate of 7.65%. Round your answers to 2 decimal places, e.g. 15.25. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No.
Date
Account Titles and Explanation
Debit
Credit
No.
Date
Account Titles and Explanation
Debit
Credit
(a) Jan. 15 (b) Jan. 15Explanation / Answer
No. Date Account Titles and Explanation Debit Credit (a) Jan. 15 Salaries and wages expense $990 To federal income tax payable $98 To FICA payable (7.65% *990 ) $75.74 To Salaries and wages payable $816.26 Note:- Gross pay = regular + overtime =$18*40 hours + $27*10 hours = $720 + $270 = $990 (b) Jan. 15 Salaries and wages payable $816.26 To cash $816.26
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